NTNX Nutanix, Inc.

NASDAQ
$68.06

Nutanix Reports Fourth Quarter and Fiscal 2026 Financial Results

Wednesday, August 26, 2026 · 4:01 PM ET GlobeNewswire

Reports 16% YoY ARR Growth and Strong Free Cash Flow for Fiscal 2026

Delivers Outperformance Across All Fourth Quarter Guided Metrics

SAN JOSE, Calif., Aug. 26, 2026 (GLOBE NEWSWIRE) -- Nutanix, Inc. (NASDAQ: NTNX), a hybrid cloud leader and AI innovator, today announced financial results for its fourth quarter and fiscal year ended July 31, 2026.

“Our fourth quarter was a strong finish to fiscal 2026, a year in which we delivered solid top and bottom line performance and added over 3,000 new customers,” said Rajiv Ramaswami, CEO of Nutanix. “In FY26, we made good progress with respect to partnerships, signing new or enhanced agreements with AMD, Lenovo, NetApp and NVIDIA. We also delivered innovation across our cloud platform, especially with respect to AI and broadening our support for external storage.”

“Our fiscal 2026 results demonstrated a good balance of top and bottom line performance with 16% year-over-year ARR growth and strong free cash flow generation,” said Rukmini Sivaraman, CFO of Nutanix. “We remain focused on delivering sustainable growth and improving profitability.”

Fourth Quarter Fiscal 2026 Financial Summary

 Q4 FY’26Q4 FY’25Y/Y Change
Annual Recurring Revenue (ARR)1$2.55 billion$2.20 billion16%
Average Contract Duration23.3 years3.2 years0.1 years
Revenue$757.1 million$653.3 million16%
GAAP Gross Margin86.0%
87.2%(120) bps
Non-GAAP Gross Margin87.7%
88.3%(60) bps
GAAP Operating Expenses$581.4 million$538.2 million8%
Non-GAAP Operating Expenses$465.6 million$457.2 million2%
GAAP Operating Income$70.0 million$31.2 million$38.8 million
Non-GAAP Operating Income$198.0 million$119.5 million$78.5 million
GAAP Operating Margin9.2%
4.8%440 bps
Non-GAAP Operating Margin26.2%
18.3%790 bps
Net Cash Provided by Operating Activities$315.0 million$219.5 million$95.5 million
Free Cash Flow$277.6 million$207.8 million$69.8 million


Fiscal 2026 Financial Summary

 FY’26FY’25Y/Y Change
Annual Recurring Revenue (ARR)1$2.55 billion$2.20 billion16%
Average Contract Duration23.2 years3.1 years0.1 years
Revenue$2.85 billion$2.54 billion12%
GAAP Gross Margin86.8%86.8%0 bps
Non-GAAP Gross Margin88.0%88.1%(10) bps
GAAP Operating Expenses$2.20 billion$2.03 billion8%
Non-GAAP Operating Expenses$1.84 billion$1.70 billion8%
GAAP Operating Income$274.0 million$172.5 million$101.5 million
Non-GAAP Operating Income$675.4 million$536.1 million$139.3 million
GAAP Operating Margin9.6%6.8%280 bps
Non-GAAP Operating Margin23.7%21.1%260 bps
Net Cash Provided by Operating Activities$916.7 million$821.5 million$95.2 million
Free Cash Flow$840.7 million$750.2 million$90.5 million


Reconciliations between GAAP and non-GAAP financial measures and key performance measures, to the extent available, are provided in the tables of this press release.

Recent Company Highlights

First Quarter Fiscal 2027 Outlook

  
Revenue$755 - $765 million
Non-GAAP Operating Margin26% to 28%
Weighted Average Shares Outstanding (Diluted)3Approximately 294 million


Fiscal 2027 Outlook

  
Revenue$3.180 - $3.230 billion
Non-GAAP Operating Margin24% to 25%
Free Cash Flow$850 - $950 million


Supplementary materials to this press release, including our fourth quarter and fiscal 2026 earnings presentation, can be found at https://ir.nutanix.com/financial/quarterly-results.

Webcast and Conference Call Information

Nutanix executives will discuss the Company’s fourth quarter and fiscal 2026 financial results on a conference call today at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time. Interested parties may access the conference call by registering at this link to receive dial in details and a unique PIN number. The conference call will also be webcast live on the Nutanix Investor Relations website at ir.nutanix.com. An archived replay of the webcast will be available on the Nutanix Investor Relations website at ir.nutanix.com shortly after the call.

Footnotes

1Annual Recurring Revenue, or ARR, is defined as the sum of ACV for all subscription contracts from all customers in effect as of the end of a specific period, assuming any subscription contract that expires is renewed on its existing terms. ARR excludes the value of professional services, non-portable software and support contracts and hardware sales. For the purposes of this calculation, we generally assume that the contract term begins on the date when the software is made available to the customer. ACV is defined as the total annualized value of a contract. The total annualized value for a contract is calculated by dividing the total value of the contract by the number of years in the term of such contract. Beginning with the first quarter of fiscal 2026, our methodology for calculating ARR was updated to align more closely with the timing of when licenses are made available to customers. For comparability purposes, ARR for all prior periods have been adjusted to conform to the updated methodology.

2Average Contract Duration represents the dollar-weighted term, calculated on a billings basis, across all subscription contracts, as well as our limited number of life-of-device contracts, using an assumed term of five years for life-of-device licenses, executed in the period.

3Weighted average share count used in computing diluted non-GAAP net income per share.

Non-GAAP Financial Measures and Other Key Performance Measures

To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, this press release includes the following non-GAAP financial and other key performance measures: non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, free cash flow, Annual Recurring Revenue (or ARR), and Average Contract Duration. In computing non-GAAP financial measures, we exclude certain items such as stock-based compensation, costs associated with our acquisitions (such as amortization of acquired intangible assets and other acquisition-related costs), restructuring charges, litigation settlement accruals and legal fees related to certain litigation matters, the amortization of the debt discount and issuance costs related to debt, interest expense related to debt, inducement expense related to the repurchase of convertible senior notes, changes in the fair value of convertible notes receivable, valuation allowance releases, and other non-recurring transactions and the related tax impact. Non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, and non-GAAP operating margin are financial measures which we believe provide useful information to investors because they provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses and expenditures such as stock-based compensation expense that may not be indicative of our ongoing core business operating results. Free cash flow is a performance measure that we believe provides useful information to our management and investors about the amount of cash generated by the business after capital expenditures, and we define free cash flow as net cash provided by operating activities less purchases of property and equipment. ARR is a performance measure that we believe provides useful information to our management and investors as it allows us to better track the top-line growth of our subscription business (including our ability to acquire subscriptions with new customers and to retain and expand with existing customers), while normalizing for differences in contract durations. Our calculation of ARR is not adjusted for the impact of any known or projected future events (such as customer cancellations, expansion or contraction of existing customers relationships or price increases or decreases) that may cause any subscription contract not to be renewed on its existing terms. ARR is a performance measure that should be viewed independently of revenue and does not represent our revenue under GAAP on an annualized basis or a forecast of GAAP revenue. Investors should not place undue reliance on ARR as an indicator of our future or expected results. ARR does not have any standardized meaning and is therefore unlikely to be comparable to similarly titled performance measures presented by other companies. We use these non-GAAP financial and key performance measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. However, these non-GAAP financial and key performance measures have limitations as analytical tools and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. Non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, and free cash flow are not substitutes for gross margin, operating expenses, operating income, operating margin, and net cash provided by operating activities, respectively. There is no GAAP measure that is comparable to ARR or Average Contract Duration, so we have not reconciled the ARR or Average Contract Duration data included in this press release to any GAAP measure. In addition, other companies, including companies in our industry, may calculate non-GAAP financial measures and key performance measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures and key performance measures as tools for comparison. We urge you to review the reconciliation of our non-GAAP financial measures and key performance measures to the most directly comparable GAAP financial measures included below in the tables captioned “Reconciliation of GAAP to Non-GAAP Profit Measures” and “Reconciliation of GAAP Net Cash Provided By Operating Activities to Non-GAAP Free Cash Flow,” and not to rely on any single financial measure to evaluate our business. This press release also includes the following forward-looking non-GAAP financial measures as part of our first quarter fiscal 2027 outlook and/or our fiscal 2027 outlook: non-GAAP operating margin and free cash flow. We are unable to reconcile these forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures without unreasonable efforts, as we are currently unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact the GAAP financial measures for these periods but would not impact the non-GAAP financial measures.

Forward-Looking Statements

This press release contains express and implied forward-looking statements, including, but not limited to, statements regarding: our business trends, momentum and prospects; our expectations regarding demand for our solutions; our ability to capitalize on market opportunities through our partnerships, cloud platform innovations, AI offerings and support for external storage; our focus on delivering sustainable growth and improving profitability; our first quarter fiscal 2027 outlook; and our fiscal 2027 outlook.

These forward-looking statements are not historical facts and instead are based on our current expectations, estimates, opinions, and beliefs. Consequently, you should not rely on these forward-looking statements. The accuracy of these forward-looking statements depends upon future events and involves risks, uncertainties, and other factors, including factors that may be beyond our control, that may cause these statements to be inaccurate and cause our actual results, performance or achievements to differ materially and adversely from those anticipated or implied by such statements, including, among others: the inherent uncertainty or assumptions and estimates underlying our projections and guidance, which are necessarily speculative in nature; supply chain constraints, component availability and related impacts on the timing of orders, shipments and customer deployments; any failure to successfully implement or realize the anticipated benefits of our business plans, strategies and initiatives, or unexpected difficulties or delays in doing so; our ability to achieve, sustain and/or manage future growth effectively; the rapid evolution of the markets in which we compete, including the introduction, or acceleration of adoption of, competing solutions, including public cloud infrastructure; failure to timely and successfully meet our customer needs; delays in or lack of customer or market acceptance of our new solutions (including AI-related offerings), products, services, product features or technology; macroeconomic or geopolitical uncertainty; our ability to attract, recruit, train, retain, and, where applicable, ramp to full productivity, qualified employees and key personnel; factors that could result in the significant fluctuation of our future quarterly operating results (including anticipated changes to our revenue and product mix, the timing and magnitude of orders, shipments and acceptance of our solutions in any given quarter, our ability to attract new and retain existing end-customers, changes in the pricing and availability of certain components of our solutions, and fluctuations in demand and competitive pricing pressures for our solutions); our ability to form new or maintain and strengthen existing strategic alliances and partnerships, as well as our ability to manage any changes thereto; our ability to successfully implement and realize the anticipated benefits of our recently announced restructuring initiatives; our ability to make share repurchases; and other risks detailed in our Annual Report on Form 10-K for the fiscal year ended July 31, 2025 filed with the U.S. Securities and Exchange Commission, or the SEC, on September 24, 2025 and subsequent quarterly reports. Additional information will be set forth in our Annual Report on Form 10-K for the fiscal year ended July 31, 2026, which should be read in conjunction with this press release and the financial results included herein. Our SEC filings are available on the Investor Relations section of our website at ir.nutanix.com and on the SEC's website at www.sec.gov. These forward-looking statements speak only as of the date of this press release and, except as required by law, we assume no obligation, and expressly disclaim any obligation, to update, alter or otherwise revise any of these forward-looking statements to reflect actual results or subsequent events or circumstances.

About Nutanix

Nutanix is a hybrid cloud leader and AI innovator, offering organizations a unified infrastructure software platform to safely run applications, data, and AI anywhere. Trusted by customers worldwide, Nutanix empowers more than 50% of the Global 2000 to innovate faster with AI, while modernizing infrastructure, simplifying operations, and controlling costs. Learn more at www.nutanix.com or follow us on social media.

© 2026 Nutanix, Inc. All rights reserved. Nutanix, the Nutanix logo, and all Nutanix product and service names mentioned herein are registered trademarks or unregistered trademarks of Nutanix, Inc. (“Nutanix”) in the United States and other countries. Other brand names or marks mentioned herein are for identification purposes only and may be the trademarks of their respective holder(s). This press release is for informational purposes only and nothing herein constitutes a warranty or other binding commitment by Nutanix.

Investor Contact:
Richard Valera
ir@nutanix.com

Media Contact:
Jennifer Massaro
pr@nutanix.com


NUTANIX, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
   
 As of 
 July 31,
2025		  July 31,
2026		 
 (in thousands) 
Assets     
Current assets:     
Cash and cash equivalents$769,502  $777,308 
Short-term investments 1,223,234   1,584,155 
Accounts receivable, net 337,967   289,251 
Deferred commissions—current 153,072   156,316 
Prepaid expenses and other current assets 105,391   221,483 
Total current assets 2,589,166   3,028,513 
Property and equipment, net 142,814   134,887 
Operating lease right-of-use assets 134,526   164,427 
Deferred commissions—non-current 189,221   217,606 
Intangible assets, net 2,615   1,837 
Goodwill 185,235   185,235 
Deferred tax asset(1) 16,974   1,215,823 
Other assets—non-current 22,643   125,357 
Total assets$3,283,194  $5,073,685 
Liabilities and Stockholders’ (Deficit) Equity     
Current liabilities:     
Accounts payable$81,599  $96,508 
Accrued compensation and benefits 230,498   269,181 
Accrued expenses and other current liabilities 24,187   36,117 
Deferred revenue—current 1,054,023   1,246,575 
Operating lease liabilities—current 23,234   35,713 
Total current liabilities 1,413,541   1,684,094 
Deferred revenue—non-current 1,058,731   1,176,794 
Operating lease liabilities—non-current 115,754   134,310 
Convertible senior notes, net 1,343,818   1,348,711 
Other liabilities—non-current 45,870   27,211 
Total liabilities 3,977,714   4,371,120 
Stockholders’ (deficit) equity:     
Common stock 7   7 
Additional paid-in capital 4,200,466   4,416,059 
Accumulated other comprehensive income (loss) 700   (4,895)
Accumulated deficit (4,895,693)  (3,708,606)
Total stockholders’ (deficit) equity (694,520)  702,565 
Total liabilities and stockholders’ (deficit) equity$3,283,194  $5,073,685 

__________________________
(1) Prior to the fourth quarter of fiscal 2026, this was included within Other assets—non-current. Prior period amounts have been updated to conform to the current period presentation.


NUTANIX, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
      
 Three Months Ended
July 31,		  Fiscal Year Ended
July 31,		 
 2025  2026  2025  2026 
 (in thousands, except per share data) 
Revenue:           
Product$339,789  $388,388  $1,341,374  $1,489,693 
Support, maintenance and other services 313,478   368,690   1,196,553   1,363,852 
Total revenue 653,267   757,078   2,537,927   2,853,545 
Cost of revenue:           
Product(1)(2) 4,372   5,661   28,341   21,443 
Support, maintenance and other services(1) 79,461   100,066   306,441   355,306 
Total cost of revenue 83,833   105,727   334,782   376,749 
Gross profit 569,434   651,351   2,203,145   2,476,796 
Operating expenses:           
Sales and marketing(1)(2) 281,280   303,897   1,056,465   1,150,278 
Research and development(1) 193,666   205,053   736,823   790,892 
General and administrative(1) 63,280   72,412   237,316   261,656 
Total operating expenses 538,226   581,362   2,030,604   2,202,826 
Income from operations 31,208   69,989   172,541   273,970 
Other income, net 13,935   12,726   39,107   53,138 
Income before provision for (benefit from) income taxes 45,143   82,715   211,648   327,108 
Provision for (benefit from) income taxes 6,493   (1,186,917)  23,282   (1,179,729)
Net income$38,650  $1,269,632  $188,366  $1,506,837 
Net income per share attributable to Class A common stockholders, basic$0.14  $4.69  $0.70  $5.61 
Net income per share attributable to Class A common stockholders, diluted$0.13  $4.34  $0.65  $5.17 
Weighted average shares used in computing net income per share attributable to Class A common stockholders, basic 268,659   270,570   267,479   268,691 
Weighted average shares used in computing net income per share attributable to Class A common stockholders, diluted 297,456   292,736   294,083   292,183 

__________________________
(1) Includes the following stock-based compensation expense:

 Three Months Ended
July 31,		  Fiscal Year Ended
July 31,		 
 2025  2026  2025  2026 
 (in thousands) 
Product cost of revenue$399  $400  $2,824  $1,550 
Support, maintenance and other services cost of revenue 6,814   8,058   27,582   28,190 
Sales and marketing 19,372   22,332   80,930   82,402 
Research and development 42,872   45,481   175,361   180,844 
General and administrative 15,714   18,254   64,893   64,681 
Total stock-based compensation expense$85,171  $94,525  $351,590  $357,667 

__________________________
(2) Includes the following amortization of intangible assets:

 Three Months Ended
July 31,		  Fiscal Year Ended
July 31,		 
 2025  2026  2025  2026 
 (in thousands) 
Product cost of revenue$105  $106  $2,185  $424 
Sales and marketing 88   90   353   354 
Total amortization of intangible assets$193  $196  $2,538  $778 



NUTANIX, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
   
 Fiscal Year Ended
July 31,		 
 2025  2026 
 (in thousands) 
Cash flows from operating activities:     
Net income$188,366  $1,506,837 
Adjustments to reconcile net income to net cash provided by operating activities:     
Depreciation and amortization 72,701   70,640 
Stock-based compensation 351,590   357,667 
Amortization of debt discount and issuance costs 3,877   5,452 
Inducement expense from partial repurchase of the 2027 Notes 11,347   — 
Operating lease cost, net of accretion 29,029   34,946 
Deferred income taxes 3,639   (1,198,850)
Other (8,468)  (4,792)
Changes in operating assets and liabilities:     
Accounts receivable, net (71,886)  (39,170)
Deferred commissions 16,517   (31,630)
Prepaid expenses and other assets (8,101)  (130,217)
Accounts payable 30,018   19,443 
Accrued compensation and benefits 33,286   44,492 
Accrued expenses and other liabilities (4,269)  709 
Operating leases, net (29,954)  (33,813)
Deferred revenue 203,764   314,974 
Net cash provided by operating activities 821,456   916,688 
Cash flows from investing activities:     
Maturities of investments 476,173   805,208 
Purchases of investments (1,359,593)  (1,167,799)
Sales of investments 3,016   2,750 
Purchases of property and equipment (71,283)  (76,013)
Net cash used in investing activities (951,687)  (435,854)
Cash flows from financing activities:     
Proceeds from sales of shares through employee equity incentive plans 68,935   61,447 
Proceeds from sales of shares through private placement —   150,000 
Taxes paid related to net share settlement of equity awards (256,636)  (195,534)
Proceeds from the issuance of convertible notes, net of issuance costs 848,010   — 
Payment of third-party debt issuance costs (3,448)  — 
Partial repurchase of the 2027 Notes (95,453)  — 
Payment of revolver issuance costs (2,794)  — 
Repurchases of common stock (307,900)  (483,543)
Other financing activities, net (6,628)  (5,399)
Net cash provided by (used in) financing activities 244,086   (473,029)
Net increase in cash, cash equivalents and restricted cash$113,855  $7,805 
Cash, cash equivalents and restricted cash—beginning of period 655,662   769,517 
Cash, cash equivalents and restricted cash—end of period$769,517  $777,322 
Restricted cash(1) 15   14 
Cash and cash equivalents—end of period$769,502  $777,308 
Supplemental disclosures of cash flow information:     
Cash paid for income taxes$32,537  $30,274 
Supplemental disclosures of non-cash investing and
financing information:		     
Purchases of property and equipment included in accounts payable and
accrued and other liabilities		$6,945  $2,412 
Unpaid taxes related to net share settlement of equity awards included
in accrued expenses and other liabilities		$13,423  $7,615 

__________________________
(1) Included within other assets—non-current in the consolidated balance sheets.


Disaggregation of Revenue
(Unaudited)
      
 Three Months Ended
July 31,		  Fiscal Year Ended
July 31,		 
 2025  2026  2025  2026 
 (in thousands) 
Disaggregation of revenue:           
Subscription revenue$615,974  $719,111  $2,410,751  $2,712,274 
Professional services and other revenue(1) 37,293   37,967   127,176   141,271 
Total revenue$653,267  $757,078  $2,537,927  $2,853,545 

__________________________
(1) Prior to fiscal 2026, these amounts were presented as separate line items, Professional services and Other non-subscription product. Prior period amounts have been updated to conform to the current period presentation.


Annual Recurring Revenue
(Unaudited)
 
   
 As of July 31, 
 2025  2026 
 (in thousands) 
Annual Recurring Revenue (ARR) (1)$2,201,672  $2,548,797 

__________________________

(1) Beginning with the first quarter of fiscal 2026, our methodology for calculating ARR was updated to align more closely with the timing of when licenses are made available to customers. Prior period amounts have been updated to conform to current quarter methodology.


Remaining Performance Obligations
(Unaudited)
   
 As of July 31, 
 2025  2026 
 (in thousands) 
Remaining performance obligations:     
Current$1,328,328  $1,686,685 
13-36 months 977,341   1,293,675 
Thereafter 386,892   460,051 
Total$2,692,561  $3,440,411 



Reconciliation of GAAP to Non-GAAP Profit Measures
(Unaudited)
         
 GAAP  Non-GAAP Adjustments  Non-GAAP 
 Three Months Ended July 31, 2026  (1)  (2)  (3)  (4)  (5)  (6)  (7)  (8)  Three Months Ended July 31, 2026 
 (in thousands, except percentages and per share data) 
Gross profit$651,351  $8,458  $106  $3,706  $—  $—  $—  $—  $—  $663,621 
Gross margin 86.0%  1.2%  —   0.5%  —   —   —   —   —   87.7%
Operating expenses:                            
Sales and marketing 303,897   (22,332)  (90)  (17,597)  —   —   —   —   —   263,878 
Research and development 205,053   (45,481)  —   (5,173)  —   —   —   —   —   154,399 
General and administrative 72,412   (18,254)  —   (1,162)  (5,248)  (408)  —   —   —   47,340 
Total operating expenses 581,362   (86,067)  (90)  (23,932)  (5,248)  (408)  —   —   —   465,617 
Income from operations 69,989   94,525   196   27,638   5,248   408   —   —   —   198,004 
Operating margin 9.2%  12.5%  —   3.7%  0.7%  0.1%  —   —   —   26.2%
Net income$1,269,632  $94,525  $196  $27,638  $5,248  $5,868  $3,001  $(1,208,216) $(22,539) $175,353 
Weighted shares outstanding, basic 270,570                          270,570 
Weighted shares outstanding, diluted (9) 292,736                          292,736 
Net income per share, basic$4.69  $0.36  $-  $0.10  $0.02  $0.02  $0.01  $(4.47) $(0.08) $0.65 
Net income per share, diluted (10)$4.34                         $0.60 

__________________________
(1) Stock-based compensation expense
(2) Amortization of intangible assets
(3) Restructuring charges
(4) Legal fees
(5) Change in fair value of convertible note receivable and other
(6) Amortization of debt issuance costs and interest expense related to debt
(7) Valuation allowance release related to our U.S. deferred tax assets
(8) Income tax effect of non-GAAP adjustments. We use a long-term projected non-GAAP tax rate of 20% for the purposes of determining our non-GAAP net income and non-GAAP income per share, which is based on our current long-term projections. We believe the use of a long-term projected tax rate of 20% aligns with the non-GAAP measure of profitability, reduces volatility of the non-GAAP tax rate and provides consistency across reporting periods. Our estimated long-term projected tax rate is subject to change for a variety of reasons, including tax law changes in major jurisdictions in which we operate, changes in our geographic earnings mix, or other changes to our strategy or business operations. We will re-evaluate our long-term projected tax rate as appropriate.
(9) Includes 22,166 potentially dilutive shares related to convertible senior notes and the issuance of shares under employee equity incentive plans
(10) In accordance with ASC 260, in order to calculate GAAP net income per share, diluted, the numerator has been adjusted to add back $1,099 of interest expense related to the convertible senior notes


 GAAP  Non-GAAP Adjustments  Non-GAAP 
 Fiscal Year Ended July 31, 2026  (1)  (2)  (3)  (4)  (5)  (6)  (7)  (8)  Fiscal Year Ended July 31, 2026 
 (in thousands, except percentages and per share data) 
Gross profit$2,476,796  $29,740  $424  $3,706  $—  $—  $—  $—  $—  $2,510,666 
Gross margin 86.8%  1.1%  —   0.1%  —   —   —   —   —   88.0%
Operating expenses:                             
Sales and marketing 1,150,278   (82,402)  (354)  (17,597)  —   —   —   —   —   1,049,925 
Research and development 790,892   (180,844)  —   (5,173)  —   —   —   —   —   604,875 
General and administrative 261,656   (64,681)  —   (1,162)  (14,899)  (408)  —   —   —   180,506 
Total operating expenses 2,202,826   (327,927)  (354)  (23,932)  (14,899)  (408)  —   —   —   1,835,306 
Income from operations 273,970   357,667   778   27,638   14,899   408   —   —   —   675,360 
Operating margin 9.6%  12.6%  —   1.0%  0.5%  —   —   —   —   23.7%
Net income$1,506,837  $357,667  $778  $27,638  $14,899  $5,868  $11,986  $(1,208,216) $(120,702) $596,755 
Weighted shares outstanding, basic 268,691                           268,691 
Weighted shares outstanding, diluted(9) 292,183                           292,183 
Net income per share, basic$5.61  $1.34  $-  $0.10  $0.06  $0.02  $0.04  $(4.50) $(0.45) $2.22 
Net income per share, diluted(10)$5.17                          $2.04 

__________________________
(1) Stock-based compensation expense
(2) Amortization of intangible assets
(3) Restructuring charges
(4) Legal fees
(5) Change in fair value of convertible note receivable and other
(6) Amortization of debt issuance costs and interest expense related to debt
(7) Valuation allowance release related to our U.S. deferred tax assets
(8) Income tax effect of non-GAAP adjustments. We use a long-term projected non-GAAP tax rate of 20% for the purposes of determining our non-GAAP net income and non-GAAP income per share, which is based on our current long-term projections. We believe the use of a long-term projected tax rate of 20% aligns with the non-GAAP measure of profitability, reduces volatility of the non-GAAP tax rate and provides consistency across reporting periods. Our estimated long-term projected tax rate is subject to change for a variety of reasons, including tax law changes in major jurisdictions in which we operate, changes in our geographic earnings mix, or other changes to our strategy or business operations. We will re-evaluate our long-term projected tax rate as appropriate.
(9) Includes 23,492 potentially dilutive shares related to convertible senior notes and the issuance of shares under employee equity incentive plans
(10) In accordance with ASC 260, in order to calculate GAAP net income per share, diluted, the numerator has been adjusted to add back $4,403 of interest expense related to the convertible senior notes


 GAAP  Non-GAAP Adjustments  Non-GAAP 
 Three Months Ended July 31, 2025  (1)  (2)  (3)  (4)  (5)  (6)  Three Months Ended July 31, 2025 
 (in thousands, except percentages and per share data) 
Gross profit$569,434  $7,213  $105  $—  $—  $—  $—  $576,752 
Gross margin 87.2%  1.1%  —   —   —   —   —   88.3%
Operating expenses:                       
Sales and marketing 281,280   (19,372)  (88)  —   —   —   —   261,820 
Research and development 193,666   (42,872)  —   —   —   —   —   150,794 
General and administrative 63,280   (15,714)  —   (2,971)  —   —   —   44,595 
Total operating expenses 538,226   (77,958)  (88)  (2,971)  —   —   —   457,209 
Income from operations 31,208   85,171   193   2,971   —   —   —   119,543 
Operating margin 4.8%  13.0%  —   0.5%  —   —   —   18.3%
Net income$38,650  $85,171  $193  $2,971  $(100) $3,008  $(20,784) $109,109 
Weighted shares outstanding, basic 268,659                     268,659 
Weighted shares outstanding, diluted(7) 297,456                     297,456 
Net income per share, basic$0.14  $0.33  $-  $0.01  $-  $0.01  $(0.08) $0.41 
Net income per share, diluted(8)$0.13                    $0.37 

__________________________
(1) Stock-based compensation expense
(2) Amortization of intangible assets
(3) Legal fees
(4) Other
(5) Amortization of debt issuance costs and interest expense related to debt
(6) Income tax effect of non-GAAP adjustments. We use a long-term projected non-GAAP tax rate of 20% for the purposes of determining our non-GAAP net income and non-GAAP income per share, which is based on our current long-term projections. We believe the use of a long-term projected tax rate of 20% aligns with the non-GAAP measure of profitability, reduces volatility of the non-GAAP tax rate and provides consistency across reporting periods. Our estimated long-term projected tax rate is subject to change for a variety of reasons, including tax law changes in major jurisdictions in which we operate, changes in our geographic earnings mix, or other changes to our strategy or business operations. We will re-evaluate our long-term projected tax rate as appropriate.
(7) Includes 28,797 potentially dilutive shares related to convertible senior notes and the issuance of shares under employee equity incentive plans
(8) In accordance with ASC 260, in order to calculate GAAP net income per share, diluted, the numerator has been adjusted to add back $1,099 of interest expense related to the convertible senior notes


 GAAP  Non-GAAP Adjustments  Non-GAAP 
 Fiscal Year Ended July 31, 2025  (1)  (2)  (3)  (4)  (5)  (6)  (7)  Fiscal Year Ended July 31, 2025 
 (in thousands, except percentages and per share data) 
Gross profit$2,203,145  $30,406  $2,185  $—  $—  $—  $—  $—  $2,235,736 
Gross margin 86.8%  1.2%  0.1%  —   —   —   —   —   88.1%
Operating expenses:                          
Sales and marketing 1,056,465   (80,930)  (353)  —   —   —   —   —   975,182 
Research and development 736,823   (175,361)  —   —   —   —   —   —   561,462 
General and administrative 237,316   (64,893)  —   (9,451)  —   —   —   —   162,972 
Total operating expenses 2,030,604   (321,184)  (353)  (9,451)  —   —   —   —   1,699,616 
Income from operations 172,541   351,590   2,538   9,451   —   —   —   —   536,120 
Operating margin 6.8%  13.8%  0.1%  0.4%  —   —   —   —   21.1%
Net income$188,366  $351,590  $2,538  $9,451  $(310) $11,347  $8,377  $(95,646) $475,713 
Weighted shares outstanding, basic 267,479                        267,479 
Weighted shares outstanding, diluted(8) 294,083                        294,083 
Net income per share, basic$0.70  $1.32  $0.01  $0.04  $-  $0.04  $0.03  $(0.36) $1.78 
Net income per share, diluted(9)$0.65                       $1.62 

__________________________
(1) Stock-based compensation expense
(2) Amortization of intangible assets
(3) Legal fees
(4) Other
(5) Inducement expense related to partial repurchase of the 2027 Notes
(6) Amortization of debt issuance costs and interest expense related to debt
(7) Income tax effect of non-GAAP adjustments. We use a long-term projected non-GAAP tax rate of 20% for the purposes of determining our non-GAAP net income and non-GAAP income per share, which is based on our current long-term projections. We believe the use of a long-term projected tax rate of 20% aligns with the non-GAAP measure of profitability, reduces volatility of the non-GAAP tax rate and provides consistency across reporting periods. Our estimated long-term projected tax rate is subject to change for a variety of reasons, including tax law changes in major jurisdictions in which we operate, changes in our geographic earnings mix, or other changes to our strategy or business operations. We will re-evaluate our long-term projected tax rate as appropriate.
(8) Includes 26,604 potentially dilutive shares related to convertible senior notes and the issuance of shares under employee equity incentive plans
(9) In accordance with ASC 260, in order to calculate GAAP net income per share, diluted, the numerator has been adjusted to add back $3,172 of interest expense related to the convertible senior notes



Reconciliation of GAAP Net Cash Provided by Operating Activities to Non-GAAP Free Cash Flow
(Unaudited)
      
 Three Months Ended
July 31,		  Fiscal Year Ended
July 31,		 
 2025  2026  2025  2026 
 (in thousands) 
Net cash provided by operating activities$219,529  $315,013  $821,456  $916,688 
Purchases of property and equipment (11,750)  (37,443)  (71,283)  (76,013)
Free cash flow$207,779  $277,570  $750,173  $840,675 

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Source: Nutanix, Inc.
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